Well...Building the Business Smartly!!! WELL Health Technologies
WELL Health Technologies (TSX:WELL) recently posted its second-quarter performance, with its revenue growing by 21.8% to $170.9 million. It was the 18th consecutive quarter of record revenue. Solid growth across its segments, Canadian patient services, Well Health United States patient services, and SaaS and technology services, drove its topline. During the quarter, the digital healthcare company had over one million patient visits and 1.5 million patient interactions, representing an annualized patient interactions of 5.9 million.
Amid top-line growth, WELL Health’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased by 5.1% to $27.8 million. Meanwhile, adjusted EBITDA to WELL’s shareholders increased by 16.2% compared to its previous year’s quarter. Despite the top-line growth, its adjusted net income declined from $17.5 million to $14.4 million. However, the company has managed to lower its net debt to shareholder-adjusted EBITDA ratio from three to 2.3, which is encouraging in this inflationary environment.
Further, the company’s long-term growth prospects also look healthy. The increased adoption of virtual healthcare services has created a multi-year growth potential for the company. It continues to make strategic acquisitions to expand its footprint and is investing in artificial intelligence to develop innovative applications and tools. Amid these innovations and its expansion efforts, I expect WELL Health to be well positioned to drive its financials in the coming years. Further, it trades at 1.2 times analysts’ projected sales for the next four quarters, making it an attractive buy.